Kier backs outlook as order book increases to record GBP11.6 billion

(Alliance News) - Kier Group PLC on Tuesday announced a new share buyback and lifted its cash dividend, as it achieved an average net cash position for the first time in 13 years.

The Manchester, England-based infrastructure services, construction and property investment business said pretax profit rose 14% to GBP32.6 million in the six months to December from GBP28.6 million a year prior.

Revenue rose 2.0% to GBP2.01 billion from GBP1.97 billion, reflecting "solid" momentum, particularly from Infrastructure Services.

Basic earnings per share increased 24% to 5.7 pence from 4.6p.

"We have delivered a strong first half, with good growth in both revenue and profits, reaching an average net cash position for the first time in 13 years, a significant milestone for the group," said Chief Executive Stuart Tongwell.

Average net cash wasGBP17 million, "materially" improved versus the prior period net debt of GBP38 million, Kier said.

This supported a 30% boost to the interim dividend to 2.6p per share from 2.0p.

In addition, Kier announced a GBP25 million share buyback, which it expects to complete within 12 months. A prior GBP20 million share buyback was completed in December.

"Our order book has grown to a record GBP11.6 billion and we have seen this momentum continue into the second half with a number of appointments to frameworks in key sectors of health, education, water and roads, with further clear opportunities ahead in energy and defence," CEO Tongwell added.

Infrastructure Services saw high levels of activity, with a particular acceleration in water, Kier said.

For Construction, order book momentum was driven through "key framework positions across the justice, education, healthcare and defence sectors, with a strong footprint in the London private sector commercial market."

Kier said 94% of expected full-year 2026 revenue and 78% of 2027 revenue was secured.

"Following our strong first half performance, the group continues to trade well with full year performance forecast to be in line with the board's expectations," CEO Tongwell said.

Shares in Kier were down 3.4% at 227.00 pence each in London on Tuesday.

By Jeremy Cutler, Alliance News reporter

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